Exports in the furniture industry are recovering, and inventory replenishment drives short-term markets. The medium to long term depends on the European and American economies!
Malaysia's KLCI index has broken through a 2-year high, and many industries have gradually seen improvements. According to Malaysia 🇲🇾 trade data for March, exports of wood products, rubber products (gloves 🧤), plastic products, metals, etc. all showed signs of growing year by year.
As a result, our industrial services index rose 📈 10.3% this year, getting rid of the dilemma of falling in 2023. Furthermore, the US dollar strengthened in Q1, and it is expected that the results announced in May will result in foreign exchange profits. The Federal Reserve stopped raising interest rates, and Malaysian stocks are expected to stabilize. Q2 foreign exchange profit/loss will depend on foreign exchange trends at the end of June.
SYNERGY, which went public last year, is trending wild this year. It announced a record high net profit in February. This year, it has risen by more than 100%, and is already the target price given by all investment banks. The results of POHUAT and HOMERIZ were released in March and April, respectively. Their turnover grew by YOY and QOQ when inventory was replenished, and they also broke through a 52-week high after the results were released.
POHUAT's quarterly decline in cash was mainly due to increased turnover, and Inventories and Trade Receivables increased due to increased order turnover. Inventory will continue to be replenished in the next 1-2 quarters, and the performance is expected to be stable. However, the longer term future still depends on the US economy. At the shareholders' meeting on April 25, the majority shareholders of the fund once again called on management to pay more dividends because there is no place to spend cash.
Management's response is still conservative, mainly because furniture is a cyclical industry. When there is cash to protect oneself during a downturn cycle, the company will not have an advantage. However, the company has paid 9 points of dividend in the past 12 months, with a weekly interest rate of over 6%, and has already entered the ranks of high-dividend stocks.
HOMERIZ was released in April, and its stock price once broke through 59.5 points, close to a two-year high. HOMERIZ's problem is that cash is increasing but they are unwilling to pay higher dividends, and the weekly interest rate is less than 3%.
Due to the poor performance of most furniture export stocks in 2023, there will be growth this year as long as there is some recovery. It is expected that in the first half of 2024, with inventory replenishment, the performance will be good. However, management cannot predict the longer term future; it still depends on the economic conditions of major customers in Europe and America.
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投资座右铭：价值为主，技术为辅，心态之上
在股市拥有超过10年的经验，主要是通过科技以及制造出口领域累积财富。
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